ECONOMYNEXT – Sri Lanka business activities in manufacturing and services continued to expand in February, buoyed by the upcoming festive season, according to a Purchasing Managers Index compiled by the central bank.
The PMI manufacturing recorded 56.8 in February from 59.0 in January (above 50) indicating a continued expansion in manufacturing activities.
“Most of the firms, particularly within the food and beverage manufacturing sector, are gearing up for the upcoming festive season, driving expansions in the new orders [60.5] and production sub-indices [53.0],” the central bank said.
Employment, 57.0, and stock of purchases, 55.0, also expanded, indicating proactive adjustments to accommodate growing demand.
Suppliers’ delivery time continued to lengthen in February, recording 56.6, reflecting the increased pressure on suppliers, the central bank said.
“Expectations for the manufacturing activities for the next three months remain positive, mainly due to the upcoming festive season.”
Sri Lanka Purchasing Managers’ Index for Services recorded an index value of 56.5 in February 2025 indicating a slower expansion in services activities.
Business activities expanded, supported by the improvements observed across most of the sectors, the central bank said.
“Business activities in the financial services continued to improve supported by increased lending activities.”
Business activities related to wholesale and retail trade and education also showed improvements.
Real estate, professional services, accommodation, food and beverage, insurance and other personal services related business activities also indicated increases in February.
New businesses increased 58.5 in February at a slower rate than in January (59.0), due to expansions observed in the financial services, accommodation, food and beverage, education, other personal services, real estate and transportation related activities.
“Employment continued to increase [59.6] amid recruitments across many companies in view of the festive season.”
Backlogs of work continued to decline at a higher rate registering 45.6.
“Expectations for Business Activities for the next three months continued to improve at a higher rate [81.3] due to upcoming festive season.” (Colombo/Mar17/2025)
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